Materiality and risk in audit and review engagements

There is increasing recognition of the relevance of materiality and risk to a wider scope of assurance engagements. Learn how to reduce the likelihood of not detecting material misstatements.

Event Details

Location and date:
Online On-Demand Event

Materiality and Risk in Audit and Review Engagement shows you how to:

  • assess the different components of audit risk
  • translate materiality and risk assessments into substantive work levels
  • evaluate misstatements

This course provides examples of industry- and firm-specific factors that may influence the materiality decision and identifies checklists and associated guidance for the determination of materiality and the assessment of risk.

View Table of Contents

Additional options and pricing may be available. See pricing and registration for more details.


7 CPD hour(s)
Pricing & registration

You will learn about:

  • the determination of materiality
  • assessing the risk of material misstatement
  • appropriate responses to assessed levels of audit risk
  • test of controls and substantive testing
  • evaluating the sufficiency of audit evidence obtained

Topics include:

  • steps involved in determining appropriate planning materiality for the audit
  • audit risk and the risks of material misstatement
  • the application of the concept of materiality during the performance and conclusion of the audit

Who should attend?

  • auditors
  • risk analysts

More Details:

Session Descriptions

Module 1: Materiality
• The role of materiality
• The determination of materiality
• Materiality and review engagements
• Determination and documentation of materiality — An example
• Review questions
• Review solutions

Module 2: Audit risk and the risks of material misstatement
• Introduction
• Audit risk
• Risk and review engagements
• Documentation of the assessment of audit risk
• Assessing the risk of material misstatement
• Review questions
• Review solutions

Module 3: The auditor's responses to assessed risks
• At the financial statement level
• At the assertion level for classes of transactions, account balances, and disclosures
• Application to test of controls
• Application to substantive testing
• Interpretation of “low,” “moderate,” and “high”
• Evaluating the sufficiency of audit evidence obtained
• Detection risk and review engagements
• Review questions
• Review solutions

Quiz 1

Quiz 2

Illustration 1: Evaluating misstatements

Illustration 2: Evaluating misstatements – Adjustments

Appendix A: Canadian Hardware Sales Ltd. and select PPM forms

Appendix B: Select PPM forms




Please contact:

Member Development and Support
Tel: 1-800-268-3793